Spotify have released their recent financial performance. Their first quarter earnings of 2023 show Spotify are doing better than ever. Growing in subscribers and revenue month by month!
Spotify have announced their 2023 first quarter finances. They’ve displayed huge growth and have outdone previous financial quarters. This first quarter has been the strongest start to any year since they first came on the scene in 2018. Spotify have grown past where they expected to see themselves.
Their Monthly Active Users grew by 22% year on year. They reached 515 million across the globe and made a point of saying this was across all age groups rather than any age in particular. Premium subscribers grew 15% year on year and reached 210 million. The main regions using Premium accounts being Europe and Latin America.
Some loss for Spotify
The overall revenue for Spotify grew by 14% YoY and reached €3.0 billion. This growth was largely driven by subscribers. The gross margin came to 25.2% thanks to improving music quality and the promotion of podcasts. Spotify’s loss came to €156 which they put down to a lack of marketing.
It marks 2 years since Spotify took over the South Korea market, and it’s been 10 years since they branched out into Poland and Italy. It seems all of Spotify’s hard work has paid off. They are arguably the most popular streaming platform for music and podcasts, and it’s easy to see why. They’re forever adding new features and expanding current ones.
All of Spotify’s reports can be found within their shareholders report. You’ll be able to see Premium subscribers grew 3 million above what they imagined. Showing that the music platform have grown beyond what they could have expected. This likely comes down to the multiple features they’ve been adding year on year.
Spotify have put a chart within their financial report. It shows their actual earnings compared to what they expected. You can see where they have reached above their target’s set. Some areas have been exceeded by a large amount. However, there is one category that is slightly below what they thought they’d see.
It’s helpful to both shareholders and Spotify users to be able to see where the money is being earned and more importantly, where money is being lost. Before making an investment you want to know what you are getting yourself into. Thankfully, Spotify seem to be performing better than even they could imagine.